GO
Loading...

What's Tripping Under Armour? Analyst Flags 3 Factors

Under Armour
Under Armour

Under Armour is a big loser today, falling roughly 6 percent, after UBS cut its rating on the stock to "neutral" from "buy" while keeping a $105 price target.

The athletic clothing and footwear maker's downgrade comes after a 50 percent surge this year for the stock, taking it as high as $107.86.

UBS analyst Michael Binetti told CNBC's "Fast Money Halftime Report" he made the call "mostly on valuation ... making it harder to put fresh money at work here."

He also noted warm weather in March and April probably pulled sales forward in the quarter and have been slowing recently.

In addition, competitor Nike has reversed some of the price hikes that had helped Under Armour increase its market share.

In a live interview on "Closing Bell" Wednesday, CEO and Founder Kevin Plank was confident Under Armour will continue to grow in coming years, with footwear eventually becoming a bigger seller for the company than apparel.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Security camera video of NYC building explosion

    CNBC's Brian Sullivan shows exclusive footage from the building explosion in NYC from a security camera.

  • Trading Nation: Bad Q2 ahead?

    Craig Johnson, Piper Jaffray, and David Seaburg,Cowen, remain bullish on the stock market and discuss the tough week for stocks and give an outlook on earnings.

  • Markets react to Yellen

    Fed chair Janet Yellen will speak at the Federal Reserve Bank of San Francisco. Anika Kahn, Wells Fargo Securities, and CNBC's Steve Liesman discuss what this means for stocks and what GDP can do for growth.